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The government increases the competitiveness of the local LED lighting industry

Jakarta (ANTARA) – The government continues to look for effective strategies so that the local light emitting diode (LED) lamp industry can compete with the lighting industry from other countries, especially products made in China.

Acting Head of Research and Development Agency of the Ministry of Energy and Mineral Resources Dadan Kusdiana said that his party proposed the Indonesian National Standard (SNI) related to safety and Minimum Energy Performance Standard (SKEM) to be applied to LED lighting products.

“More importantly, the use of high-efficiency LED lamps will make a major contribution to achieving the government’s commitments related to it” net zero emission in the energy sector,” said Dadan Kusdiana in a statement in Jakarta, Monday.

Dadan added that the standardization proposal is to ensure the quality of LED lamps circulating in the market, increase public confidence in local LED lamps, and create a fair and competitive market.

According to him, the local industry has been able to produce quality LED lamps, but has not been able to compete in terms of price so that imported LED lamps still dominate the market.

Now the government is trying to transform the LED lighting market in the country so that local and domestic industries can compete better and become hosts in their own country.

Ministry of Energy and Mineral Resources together with United Nations Development Programme (UNDP) and United Nations Environment Programme (UNEP) is implementing the project Advancing Indonesia’s Lighting Market to High Efficient Technologies (Adlight) in order to increase the competitiveness of the local LED lighting industry.

The Adlight Project has conducted a survey of a number of local LED lighting manufacturers from early June to mid-July 2021.

The results of the Adlight survey prove that the local lighting industry has high capacity, good technology, and has complete production equipment so that it is able to produce high quality products.

Furthermore, Dadan said that the demand for LED lamps continues to increase from year to year, but it is not in line with the growth of the lighting industry in the country.

In 2013, the need for lamps reached 15 million units and increased to 310 million units in 2019.

Unfortunately, the domestic LED industry only accounts for a small part of the demand for these LED lights. On the other hand, the number of Indonesian lamp exports also decreased.

“Increasing competitiveness is very important so that the production and marketing of LED lamps in the country can increase, as well as return the number of exports,” concluded Dadan, who also serves as Director General of New, Renewable Energy and Energy Conservation (EBTKE) of the Ministry of Energy and Mineral Resources.

Adlight National Project Manager Emil Salim revealed that the price factor and people’s perceptions of the quality of local products are a number of reasons that make local products less competitive.

Low demand makes it difficult for local manufacturers to obtain economies of scale, so they are unable to reduce production costs.

According to him, the market potential that can become the mainstay of the domestic LED industry is the government segment because many street lighting devices (APJ), government buildings, state-owned enterprises, hospitals, and universities use non-energy efficient lamps.

“For example, local governments may require the use of domestic LED lighting products in the procurement of APJ and the construction of new office buildings,” said Emil.

Meanwhile, companies that are members of the Indonesian Electric Lighting Industry Association (Aperlindo) have stated their readiness if the SNI for LED lighting safety is required by the government.

Aperlindo Chairman John Manoppo stated that his party is ready to meet market demand and ensure that local LED lighting demand will continue to grow.

“Demand for LED lights continues to increase and the price is cheaper than self-ballast lights”, explains John.
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Reporter: Sugiharto Purnama
Editor: Royke Sinaga
COPYRIGHT © ANTARA 2021

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